The Challenges of Technology and Economic Catch-up in Emerging Economies

2021 ◽  
Keyword(s):  
Technology Transfer ◽  
Emerging Economies ◽  
Structural Changes ◽  
Three Dimensions ◽  
Middle Income ◽  
Catching Up ◽  
Nature Of Technology ◽  
Catch Up ◽  
New Challenges ◽  
Technology Upgrading

This book synthesizes and interprets existing knowledge on technology upgrading failures as well as lessons from successes and failures in order to better understand the challenges of technology upgrading in emerging economies. The objective is to bring together in one volume diverse evidence regarding three major dimensions of technology upgrading: paths of technology upgrading, structural changes in the nature of technology upgrading, and the issues of technology transfer and technology upgrading. The knowledge of these three dimensions is being synthesized at the firm, sector, and macro levels across different countries and world macro-regions. Compared to the old and new challenges and uncertainties facing emerging economies, our understanding of the technology upgrading is sparse, unsystematic, and scattered. While our understanding of these issues from the 1980s and 1990s is relatively more systematized, the changes that took place during the globalization and proliferation of GVCs, the effects of the post-2008 events, and the effects of the current COVID-19 and geopolitical struggles on technology upgrading have not been explored and compared synthetically. Moreover, the recent growth slowdown in many emerging economies, often known as a middle-income trap, has reinforced the importance of understanding the technology upgrading challenges of catching-up economies. We believe that the time is ripe for “taking stock of the area” in order to systematize and evaluate the existing knowledge on processes of technology upgrading of emerging economies at the firm, sector, and international levels and to make further inroads in research on this issue. This volume aims to significantly contribute towards this end.

Three Barriers to Structural Changes and Catch-up by the Latecomers

2021 ◽  
pp. 524-548
Author(s):  
Keun Lee ◽  
Shanika Ramanayake ◽  
Shin Wonkyu
Keyword(s):  
Structural Changes ◽  
Labour Productivity ◽  
Resource Curse ◽  
Middle Income ◽  
Middle Income Countries ◽  
The North ◽  
Wage Rates ◽  
Catching Up ◽  
Catch Up ◽  
Negative Impacts

This chapter discusses three barriers to structural change. The first barrier is that export growth cannot be sustained in those countries where wage rates are higher than labour productivity and wages increase more rapidly than productivity growth. The second barrier is the double resource curse and associated vicious cycles. This barrier derives from the effects of undervaluation on growth in mineral exporting sectors. Undervaluation reduces export earnings and increases the price of imports. The third barrier is about the negative impacts of IPR protection in the North on exports from the South, in particular in rapidly catching-up middle-income countries. The chapter uses regression analysis to test and confirm its propositions.

scholarly journals Catching up, falling behind: the need to build upgrading coalitions for innovation and inclusive development in South Africa

Nova Economia ◽  
2020 ◽  
Vol 30 (spe) ◽  
pp. 1115-1144
Author(s):  
Glenda Kruss
Keyword(s):  
South African ◽  
Informal Economy ◽  
Local Economic Development ◽  
Inclusive Development ◽  
Middle Income ◽  
Catching Up ◽  
Open Debate ◽  
Catch Up ◽  
Middle Income Trap ◽  
Income Concentration

Abstract Through analysis of the South African case, a country stalled in a middle income trap, the paper aims to add to the literature on catch-up. It uses Albuquerque’s (2019) model of the vicious cycles arising from inequality and income concentration, together with the notion of ‘upgrading coalitions’ (Doner and Schneider 2016) required to challenge these vicious cycles, to analyse the persistence of lock-ins. It then analyses a global astronomy project, a ‘window of opportunity’ building on historically grown capabilities, promoted by ‘upgrading coalitions’ operating in the national interest. In contrast, it proposes a ‘detour’ to build domestic capabilities, driven by an upgrading coalition centred on local economic development and livelihoods in the informal economy. The paper aims to reinforce the evidence on how inequality is both a cause and consequence of a middle income trap, and open debate on how upgrading coalitions may be a critical strategy for breaking lock-ins.

Patterns of Diversification and Specialization in International Trade

2021 ◽  
pp. 298-316
Author(s):  
Önder Nomaler ◽  
Bart Verspagen
Keyword(s):  
International Trade ◽  
Technology Transfer ◽  
International Technology Transfer ◽  
Total Entropy ◽  
Income Levels ◽  
Product Range ◽  
Catching Up ◽  
Catch Up ◽  
Pattern Of Specialization ◽  
Point Of Departure

Changes in the composition of production refer not only to the structure of production but also the composition of exports. The structure of exports is the topic of this chapter. The point of departure for the chapter is the well-known U-curve pattern of specialization proposed by Imbs & Wacziarg (2003). The chapter is informed by technology gap theories of catch-up. Due to international technology transfer laggard economies can start catching up. In this process they will tend to diversify. The main aim of the chapter is to test whether the U-curve hypothesis is valid. It makes an interesting distinction between specialization within product groups and specialization between product groups. For this, the chapter develops a new measure of entropy, which decomposes within and between group degrees of specialization. A rising trend for total entropy is observed over the whole product range. The curve tends to flatten at higher income levels, but it does not decline suggesting that there is no U-curve.

From universalism to individualism: New approaches to economic growth analysis

2019 ◽  
pp. 108-126
Author(s):  
Ivan L. Lyubimov
Keyword(s):  
Economic Growth ◽  
Structural Transformation ◽  
Emerging Economies ◽  
Growth Analysis ◽  
Extended Period ◽  
Economic Policies ◽  
Adequate Account ◽  
New Approaches ◽  
Catching Up

This paper examines the evolution of academic and applied approaches to analyze the problem of economic growth since the mid-XX century. For quite an extended period of time, these views were corresponding to universalist economic policies taking no adequate account of particularities and limitations that a certain catching-up economy embodied. New approaches analyzing the problems of economic growth, on the contrary, individualize growth diagnostics, structural transformation and the organization of reforms processes for the emerging economies. We argue that individualist approaches might be potentially more effective than the universalist ones for solving the problem of slow economic growth.

scholarly journals An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle

2021 ◽  
Vol 13 (9) ◽  
pp. 4929
Author(s):  
Xiaoli Li ◽  
Hongqi Wang
Keyword(s):  
Technological Innovation ◽  
Industrial Policy ◽  
Emerging Economies ◽  
Evolutionary Process ◽  
Sustainable Growth ◽  
Rolling Stock ◽  
Innovation Capability ◽  
Firm Level ◽  
Industrial Leadership ◽  
Catch Up

In catch-up cycles, the industrial leadership of an incumbent is replaced by a latecomer. Latecomers from emerging economies compress time and skip amplitude by breaking the original strategic path and form a new appropriate strategic path to catch up with the incumbents. Previous studies have found that the original strategic path is difficult to break and difficult to transform. This paper proposes a firm-level framework and identifies the impetus and trigger factors for latecomers to transform the strategic path. The impetus is the mismatch between strategic mode and technological innovation capability. The trigger is the progressive industrial policy. Based on a Chinese rail transit equipment supplier’s (China Railway Rolling Stock Corporation; CRRC) catch-up process, this paper finds that the strategic path transformation is an evolutionary process from mismatch to rematch between strategic mode and technological innovation capability. With the implementation of industrial policy, the technological innovation capability will change. The original strategic mode does not match with changed technological innovation capability, which leads to performance pressure. With the adjustment of industrial policy, a new strategic mode adapted to new technological innovation capability emerges. This paper clarifies the source that determines successful catch-up practices for latecomers and contributes to latecomers’ sustainable growth in emerging economies.

scholarly journals Multi-faceted insights of entrepreneurship facing a fast-growing economy: A literature review

2020 ◽  
Vol 3 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Quan Hoang Vuong ◽  
Viet Phuong La ◽  
Thu Trang Vuong ◽  
Phuong Hanh Hoang ◽  
Manh Toan Ho ◽  
...  
Keyword(s):  
Economic Growth ◽  
Literature Review ◽  
Emerging Economies ◽  
Research Output ◽  
Middle Income Country ◽  
Developing Economy ◽  
Middle Income ◽  
Entrepreneurship Research ◽  
Rapid Economic Growth ◽  
Growing Economy

AbstractThis study explores entrepreneurship research in Vietnam, a lower-middle-income country in Southeast Asia that has witnessed rapid economic growth since the 1990s but has nonetheless been absent in the relevant Western-centric literature. Using an exclusively developed software, the study presents a structured dataset on entrepreneurship research in Vietnam from 2008 to 2018, highlighting: low research output, low creativity level, inattention to entrepreneurship theories, and instead, a focus on practical business matters. The scholarship remains limited due to the detachment between the academic and entrepreneur communities. More important are the findings that Vietnamese research on entrepreneurship, still in its infancy, diverges significantly from those in developed and emerging economies in terms of their content and methods. These studies are contextualized to a large extent to reflect the concerns of a developing economy still burdened by the high financial and nonfinancial costs.

scholarly journals Effects of cancer screening restart strategies after COVID-19 disruption

2021 ◽  
Vol 124 (9) ◽  
pp. 1516-1523
Author(s):  
Lindy M. Kregting ◽  
Sylvia Kaljouw ◽  
Lucie de Jonge ◽  
Erik E. L. Jansen ◽  
Elleke F. P. Peterse ◽  
...  
Keyword(s):  
Colorectal Cancer ◽  
Cancer Screening ◽  
Colorectal Cancer Screening ◽  
Catching Up ◽  
Incidence And Mortality ◽  
Specific Mortality ◽  
Cancer Specific Mortality ◽  
Catch Up ◽  
Microsimulation Models ◽  
The Impact

Abstract Background Many breast, cervical, and colorectal cancer screening programmes were disrupted due to the COVID-19 pandemic. This study aimed to estimate the effects of five restart strategies after the disruption on required screening capacity and cancer burden. Methods Microsimulation models simulated five restart strategies for breast, cervical, and colorectal cancer screening. The models estimated required screening capacity, cancer incidence, and cancer-specific mortality after a disruption of 6 months. The restart strategies varied in whether screens were caught up or not and, if so, immediately or delayed, and whether the upper age limit was increased. Results The disruption in screening programmes without catch-up of missed screens led to an increase of 2.0, 0.3, and 2.5 cancer deaths per 100 000 individuals in 10 years in breast, cervical, and colorectal cancer, respectively. Immediately catching-up missed screens minimised the impact of the disruption but required a surge in screening capacity. Delaying screening, but still offering all screening rounds gave the best balance between required capacity, incidence, and mortality. Conclusions Strategies with the smallest loss in health effects were also the most burdensome for the screening organisations. Which strategy is preferred depends on the organisation and available capacity in a country.

scholarly journals Needs of LMIC-based tobacco control advocates to counter tobacco industry policy interference: insights from semi-structured interviews

BMJ Open ◽  
2020 ◽  
Vol 10 (11) ◽  
pp. e044710
Author(s):  
Britta Katharina Matthes ◽  
Lindsay Robertson ◽  
Anna B Gilmore
Keyword(s):  
Tobacco Control ◽  
Structural Changes ◽  
Tobacco Industry ◽  
Control Policy ◽  
Qualitative Description ◽  
Structured Interviews ◽  
Middle Income ◽  
Adoption And Implementation ◽  
National Coalition ◽  
Industry Policy

IntroductionAdvocacy is vital for advancing tobacco control and there has been considerable investment in this area. While much is known about tobacco industry interference (TII), there is little research on advocates’ efforts in countering TII and what they need to succeed. We sought to examine this and focused on low- and middle-income countries (LMICs) where adoption and implementation of the Framework Convention on Tobacco Control (FCTC) tend to remain slower and weaker.MethodWe interviewed 22 advocates from eight LMICs with recent progress in a tobacco control policy. We explored participants’ experiences in countering TII, including the activities they undertake, challenges they encounter and how their efforts could be enhanced. We used Qualitative Description to analyse transcripts and validated findings through participant feedback.ResultsWe identified four main areas of countering activities: (1) generating and compiling data and evidence, (2) accessing policymakers and restricting industry access, (3) working with media and (4) engaging in a national coalition. Each area was linked to challenges, including (1) lack of data, (2) no/weak implementation of FCTC Article 5.3, (3) industry ties with media professionals and (4) advocates’ limited capacity. To address these challenges, participants suggested initiatives, including access to country-specific data, building advocates’ skills in compiling and using such data in research and monitoring, and in coalition development; others aiming at training journalists to question and investigate TII; and finally, diverse interventions intended to advance a whole-of-government approach to tobacco control. Structural changes to tobacco control funding and coordination were suggested to facilitate the proposed measures.ConclusionThis research highlights that following years of investment in tobacco control in LMICs, there is growing confidence in addressing TII. We identify straightforward initiatives that could strengthen such efforts. This research also underscores that more structural changes to enhance tobacco control capacity building should be considered.

DOES TECHNOLOGICAL SPECIALIZATION SPUR HIGH-TECHNOLOGY EXPORTS? EVIDENCE FROM PANEL QUANTILE REGRESSIONS

2020 ◽  
Vol 20 (02) ◽  
pp. 2050013
Author(s):  
SIDHESWAR PANDA ◽  
RUCHI SHARMA
Keyword(s):  
Emerging Economies ◽  
Export Performance ◽  
High Technology ◽  
Quantile Regressions ◽  
Middle Income ◽  
Middle Income Countries ◽  
Technological Advances ◽  
Technological Advantage ◽  
Technological Specialization

In view of the technological advances made by emerging economies, we revisit the role of technological specializations of different economies in determining their exports. Employing revealed technological advantage (RTA) index and revealed symmetric technological advantage (RSTA) index, this study explores the technological specialization of countries in different fields and its contribution to high-technology exports. Technological specializations are operationalized using patent data and further analyzed in context of country’s exports data of 63 countries during 2000–2013. Using panel quantile regressions analysis, this paper finds that technological specialization determines the export performance of countries in different categories. We find that middle-income countries are among the top countries with respect to few fields of technological specializations. Hence, there is a need to change the perspective whereby developing countries are viewed as mere technological follower. This finding has an implication for the role of patents in technological specialization and export performance, both of which are important factors in international competitiveness.

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